Turkish Airlines opened up sensational new daily service connecting Miami to Istanbul October 25, and also went live last month with its new generation iCargo system, delivering software solution COMIS (Cargo Operations Management and Information System) to the carrier’s global offering.
     The company reports that initial results are immediate and dramatic.
     “It’s a new era for air shippers,” Halit Anlatan, Turkish Airlines Vice President Cargo told FlyingTypers.
     “Now we can offer Southeast USA and Latin American shippers exceptional service and super fast connections via Gateway Istanbul to Europe, India, The Middle East and Africa, Mr. Anlatan added.
     From Istanbul, iCargo is designed to fulfill the business needs of Turkish Cargo, which have been increasing alongside the global growth volume of the company. The transition of sales, accounting, and operation modules has gradually been taking place since the start of second quarter 2015.
     iCargo, a product of IBS company, was developed  specifically to meet the needs of Turkish Cargo.
     “One of the most advanced technological solutions, iCargo provides quicker adaptation to sectoral developments coupled with remarkable ease of operation thanks to its community-based product function.
     “iCargo immediately enhances our service quality and operational efficiency at Turkish Cargo .
     “We also see increased ability to move capacity where [it’s] needed in a more rapid fashion, adding to our competitive advantages, which include Gateway Istanbul’s location and advanced air cargo handling facilities development."

By The Numbers

“The advanced abilities ushered into operation with COMIS are numerous,” Turkish Cargo said.

• Price information can be determined and displayed in synchronization during the reservation process.
• International stations now have ability to manage their flights and enter reservation information from departure station to arrival station at point of origin.
• The system will determine approved or reserve status for a reservation on the basis of certain parameters.
• Errors will be minimized by ensuring automatic price control with “Rate Audit.”
• All transactions of cargo in warehouse and ramp site will be carried out with hand terminals, adding greater information control whilst curbing losses and errors.
• Cargo locations are now tracked and viewed by warehouse management system instantly along with transaction history.
• All operations from the acceptance of cargo to loading the cargo to aircraft, from unloading the cargo to delivery to customer are performed with automatic business orders.
• Many manual transactions such as calculation of storage charge, printing NOTOC, issuing import manifest after check in (break down) transaction are performed automatically.
• Errors arising from manual entries and their effects on business processes will be decreased.
• Reports will be more correct as data quality increases.
• It will be possible to regulate the capacity with EDI messages to be sent by postal services and send replies to postal services to indicate the status of mails as a reply to EDI messages.
• ULD messages will be created during takeoff and landing automatically and station stock will be updated, providing more effective stock monitoring.
  Geoffrey
  
  

  Castles In The Air . . .    A cyclist rides past the world's tallest sand castle, Oct. 26, 2015, on Virginia Key Beach in Miami.    The castle, rising to a height of 45 feet, 10.25 inches, was commissioned by Turkish Airlines to highlight their new non-stop service from Miami to Istanbul.

The timeframe leading up to Christmastide—when the air cargo community exhales a long, deep breath, taking stock of 2015 while planning ahead for 2016—is once again here.
     Recently, while standing and waiting for a full-body scan pre-flight and hoping that the prescription pills in my pocket didn’t set off the damn thing, I started thinking about who I know in air cargo who has done a stellar job to raise cargo security awareness.
     One guy who knows more about getting air cargo security in line with every phase of the supply chain is Lufthansa Cargo Head of Security & Risk Prevention Management Harald Zielinski.
     Harald combines a street cop’s intuition with a visionary view of what does and does not work. He proclaims, “What air cargo must do is continually raise awareness.”
     To that end, Harald has held free, high profile air cargo meetings before large audiences both in Germany and the U.S. for the past several years.
     It’s worth mentioning that Lufthansa stands alone amongst its fellow airlines for its continued efforts in making the security dialogue public.
     “Moving forward is a terrific challenge to everybody,” says Harald Zielinski.

Where We Are Now

     “In [terms of] recent years,” Harald said, “the ‘Yemen incident’ in October 2010 had a big impact on air cargo security.”
     “It led to an increase of security requirements by the EU, especially for non-EU countries (ACC3 regulation for air carrier transporting cargo/mail into the EU).
     “Results of this regulation for the industry are additional costs for validation of the ACC3 airports/stations.
     “Additionally, another current topic for air (cargo) security is ‘Cyber Crime,’ which gains importance.
     “On the upside, an agreement of mutual recognition concerning the security regimes between EU and the U.S. has been achieved.
     “Redundancies of additional/second screening of cargo/mail at last point of departure into the U.S. have been accomplished,” Harald Zielinski said.

Security At Lufthansa Cargo

     “Lufthansa Cargo is constantly working on being a benchmark for the industry concerning aviation security.
     “Therefore it is crucial to stay ahead of possible threats and enforce actions before incidents occur.
     “To achieve this goal, the Lufthansa Cargo Security Department is in constant discussion with authorities and associations worldwide.
     “In terms of priorities, harmonizing and defining of standards for cargo screening technology worldwide is of upmost importance.
     “On an industry-wide basis, investment should flow toward projects that are orientated to this goal.
     “My belief is that harmonizing and defining goals gets the highest necessary level, as there is still plenty of room for improvement.
     “Lufthansa Cargo supports IATA’s approach of the implementation of ‘eCSD’ (electronic consignment security declaration).
     “The initiative aims toward a global harmonization on the transfer of security-relevant data between entities that are part of the worldwide cargo network.
     “Another topic that is in progress by the customs authorities and is fully supported by Lufthansa Cargo is cargo-data transfer between EU and the U.S. (Pre-Loading Advice Cargo Information, PLACI).
     “Here in Germany we are constantly updating our security setup and implementing new technologies.
     “The nature of the threat has not changed, only heightened, during the past few years.
     “Therefore security remains a key aspect for success as a cargo airline.”

Security & Third Party Handling

     “Lufthansa Cargo has the same high standards when it comes to security toward third parties as it has for itself.
     “To ensure that third parties implement equal security standards, different measures have been implemented by LCAG as an integral element of our ‘Quality Assurance Management System.’
     “QAMS is comprised of cargo security manuals, auditing, and also includes on-site inspections.
     “Most recently, Lufthansa Cargo is proud to say that it launched (in addition to our mandated general measures) a ‘Security Data Management System.’
     “SDMS includes a database with details of every station/warehouse worldwide where Lufthansa Cargo handles freight.
     “The system is updated constantly to insure that every station fulfills the high security standards determined by Lufthansa Cargo.”

Security Conference Ahead

     Next year will see yet another of Lufthansa Cargo’s highly acclaimed one-day Security seminars taking place in Germany.
     At the time this article was published, the date was yet to be determined.
Harald said:
     “The agenda is purposely kept flexible so that our gatherings are addressing major issues confronting the industry in real time.
     “No creating an agenda months in advance—we are security experts in the here and now, gathered to discuss and deconstruct security challenges for the purpose of looking for solutions to hot button issues at hand.
     “There have been six Security Conferences/Council up to now.
     “The first conference was in 2006.
     “As mentioned at the top, topics focus on general interest in the industry at that time.
     “For example, the last Security Council dealt with the threat of international terrorism and Cyber Crime.

Priorities in Cargo Security

     With the giant Lufthansa Cargo center in Frankfurt and every other cargo station the carrier operates or is associated with under the watchful eye of “One Tough Cop” (as Harald Zielinski has been described), we wonder about priorities.
     Harald, as it turns out, has thought about that as well.
     “Air cargo cannot rest.
     “The industry needs an immediate and long-range plan toward further improvement of screening technology
     “Avoiding different security standards within the EU (since there are still differences between EU member states when it comes to implementing EU regulation concerning aviation security)
“There needs to be worldwide harmonization of security standards (according ICAO Annex 17) in more detail, since ICAO Annex 17 is too broad to harmonize the day-to-day cargo security business.”


Loves EDD

     “In Germany a recent development is the acceptance of EDD (Explosive detection dogs) as screening technology.”

An Appeal

     “Nations must develop air cargo security standards and implement new laws and regulations,” Harald Zielinski said.
     “But to get things right and actually enhance aviation security, it is necessary to know how the air cargo industry works.
     “Unfortunately, authorities worldwide still have a lack of general understanding of ‘air cargo security’ (versus aviation security for passengers).
     “Therefore I must repeat the call that it is incumbent on the air cargo industry to better define and align common security regulations,” Harald Zielinski said.
Geoffrey

     Unlike many of its peers, U.S.-based global logistics provider BDP International has seen air cargo demand soar this year, although the company’s bullish run has slowed as West Coast port congestion has been addressed. Senior Vice President of Global Air Freight at BDP Gary Phelps told FlyingTypers the company’s air cargo division had seen strong growth in the first half of the year compared to the same period of 2014.
     “BDP experienced a robust global tonnage increase of 20.3 percent in chargeable kilos over the first six months of the year and a forty-six percent year-over-year increase in air exports from the Americas during the period due to the U.S. West Coast Port dispute,” he said. “BDP provided multiple charters of key raw materials to Asia and Europe from the U.S.
     “However, the global air market has recently cooled from June 2015 forward to the normal levels experienced in 2014.”
     According to Phelps, air to ocean conversion began in late May and will continue through October this year, after which some summer bellyhold capacity would be withdrawn. “The ocean less-than-container-load (LCL) market is seeing substantial global growth,” he said. “BDP customers can quickly and easily move between services based on their transit and cost requirements.”
     He also said that summer passenger wide-body capacity had pushed global spot market rates lower, which had affected only-cargo aircraft and passenger bellyhold rates, although demand for air cargo filling upper and lower decks had remained “significant.”
     Shifting gears to lower levels of air volume has seen BDP seek ways to provide more value to air freight customers by expanding its Unit Load Device (ULD) program on key lanes. “The intact ULD movements result in quicker transit and enhanced cargo handling,” he said. “Our expansion of ULDs from Europe to the U.S. and Asia will result in increased customer satisfaction. BDP's core carrier program has strengthened our global procurement and added customer score card improvements in landed cost.”
     Phelps expects air cargo volumes to begin ramping up in October and November to levels similar to those recorded in 2014.
     “BDP will focus on key gateway locations for further expansion of ULDs and service improvements” he said. “One example of expanded service is our e-freight technology. BDP has undertaken a global process to include e-Freight, which will be completed before 2016. We expect our global e-Freight technology to improve freight movement and cost structures and reduce paper tender.
     “This is being deployed with our core carrier group and will have a positive effect for our customers in 2016.”
     Looking ahead, he said BDP saw “positives” on the Trans-Atlantic west bound and above market growth on its U.S. air exports. “The U.S. dollar is strong and is reducing overall market growth for exports,” he added. “This trend will most likely continue through the spring of 2016.
     “We remain solution-focused with our customers being offered new Unit Load Device origins and destinations. This allows BDP to tender later and retrieve customer consignments earlier. In addition, handling is reduced and the cargo touch is an overall better experience. Our global gateway focus allows improvement with our customers’ wallet spend.”
     He also expects further growth to and from India in 2015. “We have a new, mixed ULD program that is going into production on October 1, 2015,” he said.
     “This new mixed ULD BDP ‘AirStar’ program from the U.S. to India will assist with intact movements, no splits of cargo, and reliable bonded destination delivery to the following airports: Delhi, Bangalore, Mumbai, and Madras. We anticipate Wednesday and Saturday departures from Chicago and New York for the new U.S. to India ‘AirStar’ program. Trials will begin this month followed by the full market launch.”
     BDP International is also taking a big step forward in Asia with the expansion of its IATA license holding stations. “We are expanding our presence at Taipei, Kuala Lumpur, Bangkok, Jakarta and Saigon before December 31, 2015,” said Phelps. “Our global core carriers are lined up to support our 2016 expansion.
     “We expect our Asia airfreight strategy to fall in line with our key performance indicators. Growth will occur for BDP Asia to Europe and the U.S. Currently, Seoul and Singapore lead our airfreight charge in Asia. We will be making further 2016 expansions in Hong Kong and Shanghai with our Class A license.”
     BDP USA has also expanded its Air Import Gateways to include new ULD Services from Europe to Atlanta, Chicago, Dallas, Los Angeles, New York, and Miami. “The new Air Import Gateways were developed by Director of the Americas Kevin Connor and started receiving cargo on August 1, 2015,” he said.
     “We expect our Americas imports to expand significantly in 2016. The initial market tests were performed from Belgium, France, Germany, Netherlands, and the United Kingdom. Director of EMEA Patrick Olyhoeck is leading our Trans-Atlantic expansion. In addition, we have added new team members to our global airfreight team, allowing us to keep pace with our growth. We expect further expansion of specialized air product team members in Asia and Europe.”
     He said the key challenges facing global forwarders in 2016 were managing capacity versus demand, dangerous goods handling, key vision and strategy formulation, and execution on service and yield management.
     “We are reviewing weekly capacity versus demand in our key global market sectors and working with our core carriers to expand tonnage and on time performance,” he said.
     “We look at e-Freight to manage our future regulations and customs interactions globally. This will provide BDP and our customers a competitive advantage in the market place. Global rates go up and down and track to jet fuel with the capacity versus demand factor adding or deleting margin.”
     BDP also plans to continue expanding. “We see big growth in the Middle East, India, and the countries participating in the Trans- Pacific Partnership (TPP)—Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
     “BDP is present in all TPP countries and we expect exceptional growth in airfreight.”Sky King

Latin Opportunity    Fifteen years ago, BDP and Colombia-based Interflex S.A. Group established a business relationship that only grew stronger over time.    In 2013 the two companies announced a partnership—a joint venture—that took the relationship to an even higher level. The company now operates as BDP International Colombia under a management team led by General Manager Enrico Benedetti.    The BDP offer includes air, sea, inland, project cargo, and more. Contact: enrico.benedetti@bdpint.com

   EVA Air (BR), the largest privately owned Taiwanese airline, has stopped their former thrice-weekly 747-400ERF freighter flights into Frankfurt, Germany, citing “lack of demand” and “a better yield for Asia–US-bound flights.”
     With the withdrawal of the FRA-bound freighters, BR’s last main deck capacity into Europe is gone and the remaining uplift capacity of their 777 and 747 passenger versions out of Vienna (VIE), Amsterdam (SPL), and London (LHR) is but a fraction the former sizable uplift capacity of BR in the European cargo market.
     BR’s former European hub in BRU was closed years ago, and the FRA office shrunk down with the local staff about to be let go.
     About layoffs, sources told FlyingTypers some 10- to 20-year employees of BR in FRA that now have lost their jobs may sue for discrimination, as Taiwanese staff on the payroll for much shorter periods of time have been retained.
Jens